1263

T R E N D L I N E S W W W . T H E Z W E I G L E T T E R . C O M S e p t emb e r 1 0 , 2 0 1 8 , I s s u e 1 2 6 3

Design-Build

10 20 30 40 50

43 45

Finding out what you’re good at

The design-build method of project delivery has taken root with state departments of transportation nationwide. According to Zweig Group’s Insider’s Guide to the State DOT Market , the number of states using design-build for highways has grown by 275 percent over the last 20 years, from 12 states using the method in 1997, to 45 states using it now. 2018 2014 2006 2001 1998 1997

I t seems to me that one of the keys to being a really successful design professional is figuring out what you are really good at and doing more of it. No one is good at everything – or, at least, very few are. So you have to specialize. Some of us resist this idea. We don’t want to be “pigeon-holed” or unduly restricted. We get bored easily. We are creative. We like to learn new things. There’s nothing wrong with that, but: 1)The market doesn’t reward lack of special- ization. It doesn’t matter whether you are talking about doctors, lawyers, management consultants (ahem!), architects, planners, or engineers – the specialists are the ones who always get paid more. They are in shorter sup- ply and (theoretically) aren’t learning at the clients’ expense. 2)It is hard (if not impossible) to market yourself to the whole world. This is some- thing few people in business consider, but it is extremely crucial. When your group of poten- tial buyers for what you are selling is small and super well-defined, marketing is as simple as building a complete list and then hammering away on that audience through dozens of dif- ferent methods and channels. When it is large and ill-defined, it gets very expensive to reach anyone! 3)You can specialize and still keep learning. Your learning is just more relevant. This one always gets me. If your knowledge base is deep versus shallow and a mile wide, you will have to learn to keep up. Or you won’t be seen as a specialist any longer.

“One of the keys to being a really successful design professional is figuring out what you are really good at and doing more of it.”

Mark Zweig

STATE OF THE DOT http://bit.ly/state-of-the-dot

F I R M I N D E X Anda Andrei Design. ...............................8 Bonetti Kozerski Architecture. .................8 Cooper Robertson................................12 Handel Architects....................................8 Jacobs Engineering Group Inc..............12 James Carpenter Associates. ...............12 LJA.........................................................4 O’Connell Robertson...............................2 Oppenheim Architects.............................8 RPS......................................................12 SidePlate. ...............................................6

MORE COLUMNS xz GUEST SPEAKER: Your own worst enemy Page 3 xz M&A INSIGHTS: Prove it, part 2 Page 9 xz GUEST SPEAKER: The threat is real Page 11

Conference call: Henry Gallart See MARK ZWEIG, page 2

Page 6

T H E V O I C E O F R E A S O N F O R A / E / P & E N V I R O N M E N TA L C O N S U L T I N G F I R M S

ON THE MOVE EXECUTIVE LEADERSHIP TRANSITIONS ANNOUNCED O’Connell Robertson announced leadership changes within the company, completing the management transition program that began in 2016. Supporting the firm’s vision to continuously elevate its design and expertise, Jarrod Sterzinger was named director of architecture. In this role, he will lead the architectural vision for the firm across all project types, markets, and regions. He will be responsible for fostering the design process, ensuring that quality and service exceeds client expectations and are executed at the highest level of professionalism. He will lead the development and implementation of a corporate design vision for more than 20 architects and designers in the firm’s Austin and San Antonio offices, guiding all to provide the best design potential on every project. “Jarrod’s design expertise and ability to lead a very thoughtful, organized and collaborative process on projects of all types and sizes have achieved outstanding results for our education clients,” said President Amy Jones. “We are excited about the impact his new leadership role will have on achieving every project’s mission.” Since joining O’Connell Robertson in 2008, Sterzinger has led the design for numerous award-winning K-12 and higher education projects, including Round Rock ISD’s Success High School, Austin Community College’s Elgin Campus, and the UT Pickle Research Center Texas Advanced Computing Center. Additional executive transitions include the move toward a co-CEO leadership structure for the firm as Rick Burnight leaves his position as CEO to focus on key client relationships, new business development, and special projects within the firm. Under Burnight’s leadership, O’Connell Robertson achieved unprecedented revenue growth, increases in project scale and scope, and development of staff expertise. Building on their two decades of working together at O’Connell Robertson, Jones and

COO Kim Cochran will each assume the responsibility of co-CEO while continuing in their existing roles. “Amy and I have been part of the executive leadership team with Rick over the past several years, so we understand the role and the responsibilities involved. We look forward to continuing O’Connell Robertson’s mission to positively impact all who experience and interact with our work,” said Cochran. “We have always strived to have a greater impact on our clients, community, and the built environment - and that focus will not change.” The co-CEO structure was planned to take advantage of the skills and strengths of the firm’s two leaders. Jones joined O’Connell Robertson in 1997 and became the firm’s fourth president in 2016. She will continue to focus on client relations, business development, strategic partnerships, and community engagement while overseeing the communication and implementation of the firm’s vision, mission and strategic plans. Cochran has more than 35 years of experience in the design and construction industry and became COO in 2016. He will continue to focus on the firm’s operations and infrastructure, including financial planning, business activities, organizational performance, and the daily operations of the firm’s offices. Both Jones and Cochran will continue to serve in project leadership positions as well. “These announcements complete a final step in a corporate leadership transition that began over 24 months ago,” said Burnight. “Identifying, developing and keeping future leaders is a tremendous challenge for any business in today’s AEC industry. I’m pleased with the plan we developed to ensure O’Connell Robertson will continue to grow and thrive, building on the strong foundation of nearly 70 continuous years in business in Texas. I am confident that Amy and Kim, along with Jarrod and the other principals, will lead the firm successfully into the future.”

1200 North College Ave. Fayetteville, AR 72703 Mark Zweig | Publisher mzweig@zweiggroup.com Richard Massey | Managing Editor rmassey@zweiggroup.com Christina Zweig | Contributing Editor christinaz@zweiggroup.com Sara Parkman | Editor and Designer sparkman@zweiggroup.com Liisa Andreassen | Correspondent landreassen@zweiggroup.com

Tel: 800-466-6275 Fax: 800-842-1560

MARK ZWEIG, from page 1

Email: info@zweiggroup.com Online: thezweigletter.com Twitter: twitter.com/zweigletter Facebook: facebook.com/thezweigletter Published continuously since 1992 by Zweig Group, Fayetteville, Arkansas, USA. ISSN 1068-1310. Issued weekly (48 issues/year) $250 for one-year print subscription; free electronic subscription at thezweigletter.com/subscribe Article reprints: For high-quality reprints, including Eprints and NXTprints, please contact The YGS Group at 717-399- 1900, ext. 139, or email TheZweigLetter@ TheYGSGroup.com. © Copyright 2018, Zweig Group. All rights reserved.

4)You HAVE to be creative to be successful as a specialist. Just because you work with the same types of clients or facility types doesn’t mean you want to do the same thing or do it the same way every time. Do it better. Do it so that it differentiates you and demonstrates your real value to the client. Creativity is lacking in our business but not because of specialization. 5)Everything is going to get a lot more efficient when you specialize. Doing some- thing over and over – working with the same clients repeatedly – that’s how you learn what people really want, and that’s how you can get to where you can anticipate prob- lems before they occur. That makes life easier and makes your projects much more ef- ficient. There’s nothing wrong with these things, either. If you hear people talking around the coffee pot that your services are or are becoming a commodity – you’d better think long and hard about why that’s the case. I’ll bet you’ll find that a lack of specialization is at the core of your problem! MARK ZWEIG is Zweig Group’s chairman and founder. Contact him at mzweig@zweiggroup.com.

THE ZWEIG LETTER September 10, 2018, ISSUE 1263

O P I N I O N

Your own worst enemy

If you don’t identify and address your firm’s problems, you could increase the measure of risk while decreasing value.

T here is a four-letter word floating around out there that’s probably the first that comes to mind when someone is determining whether an investment is worthwhile. Guessed it yet? If you haven’t, then I’ll tell you: It’s risk.

A majority of private company valuations are performed under the premise of fair market value as defined in IRS Revenue Ruling 59-60. This is the ruling most commonly prescribed as a guide for the valuation of closely-held companies and their securities – the price at which the property would change hands between a willing buyer and a willing seller when the former is not under any compulsion to buy and the latter is not under any compulsion to sell, both having reasonable “The specific company risk premium is of primary importance to you as a firm owner or principal because this is where the rubber meets the road in terms of driving firm value up or down.”

Anyone with a pile of money looking to invest does not generally do so without first assessing the riskiness of an investment, the likelihood of receiving a return on that investment, and the level of risk present to determine how much return will be required. People usually think of big, publicly traded companies when investing, and do not put as much emphasis on returns when dealing with private companies. In many cases, people investing in closely-held firms tend to look at it more from the perspective of lifestyle than a formal investment. That is, they see the “returns” more along the lines of independence, setting one’s own schedule, and discretion with money management. When it comes to valuing private company shares, the valuation exercise requires the development of rates of return and firm owners should expect not just a return of investment, but a return on investment.

Tracey Eaves GUEST SPEAKER

See TRACEY EAVES, page 4

THE ZWEIG LETTER September 10, 2018, ISSUE 1263

ON THE MOVE EDMUND RUCKER NAMED VICE PRESIDENT OF HOUSTON LAND DEVELOPMENT AT LJA LJA announced the promotion of Edmund Rucker, PE to vice president, Houston Land Development. Rucker earned a bachelor’s degree in structural analysis and design and his MBA from the University of Houston. With more than 19 years of progressive experience in civil engineering ranging from field project representative to senior project manager, he routinely works with developers, municipal utility districts, and local government agencies

providing concept through construction phase services for new development, in addition to rehabilitation of aging infrastructure. He also has extensive experience with large, mixed- use master planned communities containing single and multi-family development. Rucker is the district engineer for numerous MUDs and management districts and is well-versed in providing engineering expertise and guidance to these entities. He has established himself as a leader and mentor to those under his supervision and to his co-workers.

Founded in 1972, LJA now has 25 offices across the nation. The firm is employee- owned with each staff member empowered to make key decisions while being vested in the success of the firm. The strongest indication of LJA’s success stems from client satisfaction and industry recognition. A carefully honed internal culture of dedication, commitment, and client-focused results is indicative of LJA’s approach to its work at all levels and evident in the way the firm conducts business.

TRACEY EAVES, from page 3

been done in your firm to determine performance levels such as liquidity, receivables collection, working capital, and debt burden, among others? ❚ ❚ Asset risk. AEC firms have a significant amount of value wrapped up in intangible assets such as reputation and client base. Intangibles are high-risk assets that can erode quickly unless consistently nurtured. What are you doing to ensure and sustain a strong value for your firm’s goodwill? ❚ ❚ Competition. What are your strengths and weaknesses when compared with the competition? ❚ ❚ Management quality and depth. Do you have depth in your bench or is there a heavy reliance on only a few top players? ❚ ❚ Diversification. Are you diversified in size, geography and customer base? If your firm relies upon a handful of clients for most of its revenue, the upward impact on risk is substan- tial. To demonstrate the influence that a rate of return has on value, assume that a firm has net cash flow to equity of $500,000. That is the cash flow available to the shareholders which is free of working capital requirements and capital expenditures. Also assume that the rate we are using is inclusive of the company-specific risk premium and long-term growth has been accounted for.

knowledge of the relevant facts. Revenue Ruling 59-60 goes on to enumerate several factors for consideration, including the earning capacity of the business. Enter the income approach. “Anyone with a pile of money looking to invest does not generally do so without first assessing the riskiness of an investment, the likelihood of receiving a return on that investment, and the level of risk present to determine how much return will be required.” The income approach to valuing a business uses a financial return stream to develop an indication of value for the interest under consideration. In doing so, the appraiser must develop a discount rate that is the proxy required return for the hypothetical buyer. There is more than one technique for developing a discount rate, but I want to focus on the build-up methodology to demonstrate how the risk level present in a closely-held company can have an impact on value. A good rule to remember is a high level of risk equals a lower value and lower risk leads to higher values. In the build-up methodology, the discount rate is “built- up” from empirical financial risk components derived from the public markets. In today’s economy that rate is around 15 to 17 percent for net cash flow to equity, or slightly higher if the appraiser determines that a size premium rate from the smallest of the small companies is warranted. One additional component is necessary to account for the fact that your closely-held firm is likely much different than a company traded on an exchange. This last component is called the company-specific risk premium because it is specific to the subject business being valued. The specific company risk premium is of primary importance to you as a firm owner or principal because this is where the rubber meets the road in terms of driving firm value up or down. Take a minute to run down this list and ask yourself where you think you might stand: ❚ ❚ Financial condition. How do you stack up against industry guidelines? When’s the last time any financial analysis has

Net cash flow to equity:

$500,000

Rate:

20%

23%

25%

Value indication:

$2,500,000 $2,174,000 $2,000,000

Based on the concluded rates, the spread in value indications is $500,000, or an entire year of cash flow! Now, I know that no one likes “leaving money on the table.” Spending some time understanding your firm’s risk drivers and addressing those on the high end of the scale could very well be time wisely spent. I am always pleased to talk with firm owners who are thinking ahead to an exit strategy and want to learn more about improving firm value. With time and sustained focus, problem areas of any firm can be corrected, and that should improve the measure of risk and increase value. TRACEY EAVES, MBA, CBA, CVA, BCA, CMEA is a member of the valuation consulting team at Zweig Group. She has been valuing privately held company interests for more than 18 years. Contact her at teaves@zweiggroup.com or directly at 505.258.8821.

THE ZWEIG LETTER September 10, 2018, ISSUE 1263

This is an exclusive event for top leaders to discuss the highest level issues facing CEOs and the C-suite of today’s AEC rm. This two-day event includes educational and networking sessions in an upscale setting, and is part of Zweig Group’s new Experience Education series. The November 7-9 event will explore the roots of Kentucky bourbon and how these family owned distilleries have grown to serve a worldwide boom while maintaining the culture and character of their businesses. Bourbon lovers or just lovers of the outdoors will enjoy the trip as we travel the Kentucky countryside to some of the most well known distilleries. During our tour of these historic and architectural sites, we will learn the roots of businesses, how these organizations have scaled operations to meet worldwide demand, and how their marketing, sales, and management strategies have built strong brands and rich cultures. We will couple this experience and knowledge with the most pressing issues and ideas in AEC rms today. With attendees in control of the subject matter, we will conduct roundtable discussions on a variety of topics that will hit right at the heart of what is needed to eect change in your organization. The program is led by industry experts with extensive experience working with and leading AEC rms. The two-day agenda covers areas of discussion determined by those in attendance. It’s presented in a guided discussion format to encourage discussion among all attendees. CEO ROUNDTABLE BOURBON EXPERIENCE November 7-9 Louisville, KY

Follow the link for more details, the agenda, information on the presenters, and venue. zweiggroup.com/seminars/ceo-roundtable/

THE ZWEIG LETTER September 10, 2018, ISSUE 1263

P R O F I L E

SidePlate staff spending a little time with Ronald McDonald.

Conference call: Henry Gallart CEO of SidePlate (Best Firm Structural #4 for 2018), a civil engineering firm based in Mission Viejo, California.

By LIISA ANDREASSEN Correspondent

“T here is no question that organic growth is the way to go,” Gallart says. “M&A can help you grow your firm, but it comes at a price – many times a high price.” A CONVERSATION WITH HENRY GALLART. The Zweig Letter: Diversifying the portfolio is never a bad thing. What are themost recent steps you’ve taken to broaden your revenue streams? Henry Gallart: We’re exploring new marketplaces such as airports and high-rise buildings where we haven’t historically played before. SidePlate brings value to any steel structure, and each year our cus- tomers bring us into exciting and interesting proj- ects that we might not have looked at even five years ago. TZL: The list of responsibilities for project man- agers is seemingly endless. How do you keep your PMs from burning out? And if they crash, how do you get them back out on the road, so to speak? HG: We’re ever mindful of their workload and as- sociated standard of care they provide our custom- ers. Each of our PMs leads a team and each mem- ber has a specialty or specific strength that helps

the PM keep their list of projects on track at all times. In addition, we are continually developing design tools and resource management tools that allow them to handle the increased workload with- out burning out. For example, we create software tools for estimating and design enhancement that allow our connections to fit directly into many soft- ware models. These tools help automate a lot of the work. “We try to ensure that our top people who are looking to grow into greater leadership positions are provided the necessary training to be the leaders of tomorrow.” TZL: What is the role of entrepreneurship in your firm? HG: It’s in the SidePlate DNA to innovate and stay on the cutting-edge in our industry. We are in- fusing a greater awareness of project profitability throughout the entire company, and not just at the leadership team level.

Henry Gallart, CEO, Side- Plate

THE ZWEIG LETTER Septe

TZL: What’s your policy on sharing the firm’s financials with your staff? Weekly, monthly, quarterly, annu- ally? And how far down into the org chart is financial information shared? HG: We share our firm’s financials with the entire company at our CEO update shortly after the quarter ends. “As you groom the up and comers, it’s important to see their vision and be sure you can embrace their direction enhancement looking to the future.” TZL: The design-build delivery mod- el appears to be trending upward. What are the keys to a successful design-build project? What are the risks? HG: It’s important that everyone rec- ognizes they are part of the same team. Everyone needs to be mindful of each other’s success and be willing to go the extra mile to ensure the max- imum success for every team mem- ber. When team members forget that, trouble ensues. TZL: The talent war in the A/E indus- try is here. What steps do you take to create the leadership pipeline need- ed to retain your top people and not lose them to other firms? HG: We try to ensure that our top peo- ple who are looking to grow into great- er leadership positions are provided the necessary training to be the lead- ers of tomorrow. In addition, we reg- ularly meet with them to make sure they’re being challenged, are growing, and feel that they are being heard. TZL: As you look for talent, what po- sition do you most need to fill in the coming year and why? HG: We will be bringing IT support in house, so that very necessary role will be first. And, as SidePlate’s market share grows throughout the next year, expect to see new regional engineers and project managers move up the list. TZL: While plenty of firms have an ownership transition plan in place, many do not. What’s your advice for firms that have not taken steps to

identify and empower the next gen- eration of owners? HG: Get on it! To do this right, it takes years to truly groom the next gen- eration of owners/leaders. You don’t want to find yourself having to go back like Steve Jobs after selling be- cause you didn’t do a good enough job infusing the necessary DNA into the next generation. Additionally, as you groom the up and comers, it’s impor- tant to see their vision and be sure you can embrace their direction enhance- ment looking to the future. TZL: Zweig Group research shows there has been a shift in Business Development strategies. More and more, technical staff, not marketing staff, are responsible for BD. What’s the BD formula in your firm? HG: To work with, sell to, and com- mand the respect from technical folks like structural engineers, you need to be an engineer. Complementing our technical expertise in the field, we have a fully staffed marketing depart- ment to make sure our messaging is clear, concise, and on target. TZL: Measuring the effectiveness of marketing is difficult to do us- ing hard metrics for ROI. How do you evaluate the success/failure of your firm’s marketing efforts when results could take months, or even years, to materialize? Do you track any metrics to guide your marketing plan? HG: We have a marketing department, but we view everyone in the company as a marketer. To that, we gauge our marketing successes on customer sat- isfaction. When customers are happy, Team SidePlate is doing its marketing right. “It takes years to truly groom the next generation of owners/leaders. You don’t want to find yourself having to go back ... after selling because you didn’t do a good enough job infusing the necessary DNA into the next generation.”

YEAR FOUNDED: 1995 HEADQUARTERS: Mission Viejo, CA GALLART: He’s been responsible for the lateral design of more than 200 high-profile structures including GSA, DoD, and FAA facilities, located in and out of high-seismic regions. He is not your typical business leader. His colleagues say, “He marches to the beat of a different piano.” NO. OF EMPLOYEES: 36 SPECIALTIES:

❚ ❚ Lateral design ❚ ❚ Seismic design ❚ ❚ Progressive collapse analysis ❚ ❚ Structural analysis ❚ ❚ Performance-based design ❚ ❚ Finite element analysis ❚ ❚ Physical testing and approvals ❚ ❚ OSHPD and AISC CPRP

COMPANY CULTURE: A “people first” culture is driven from both the top down and the ground up. Their parent company, MiTek, works closely with SidePlate to create a culture that honors, influences, inspires, and engages the entire team to do their very best. INDUSTRY THOUGHT LEADERS: Structural and software engineers continuously work on methods to improve the performance of moment frame buildings and the design/ detailing tools to support successful projects. They regularly share research with industry colleagues through technical papers and engineering journals.

See CONFERENCE CALL, page 8

ember 10, 2018, ISSUE 1263

BUSINESS NEWS LUXURYBEACHFRONT LIVINGWITHUNPARALLELED RESORT AMENITIES & WORLD-CLASS DESIGN JUST 70 MINUTES FROM MANHATTAN Asbury Ocean Club, Surfside Resort and Residences is the Tri-State’s most anticipated and most complete luxury residential oceanfront development in decades. Located in Asbury Park, New Jersey, just 70 minutes from New York City, Asbury Ocean Club will welcome residents into sun-drenched apartments with ocean views, wraparound terraces, and an ultra-luxe design that is unlike anything along the Jersey coast. Asbury Ocean Club is the crown jewel of real- estate leader iStar. Led by innovative CEO Jay Sugarman, iStar acquired 35 acres in the city and has spent more than $300 million on its efforts. The developer is the force behind a 10-year, multi-billion-dollar redevelopment plan for a 1.25-mile stretch along the Asbury Park waterfront that includes the Asbury and is also the force behind Monroe, a collection of 34 condominium homes designed by Oppenheim Architects , and the newly reopened Asbury Lanes, the state-of-the-art bowling alley and music venue. Space and light, peace and relaxation, ocean and sun: Asbury Park feels like nowhere else, and the experience continues through the doors of Asbury Ocean Club. A remarkable roster of global design talent came together to create Asbury Ocean Club. Anda Andrei, president of Anda Andrei Design , who worked on some of the world’s best-known boutique and lifestyle hotels is iStar’s creative lead and design director for the revitalization of Asbury Park. Her collaborators include Handel Architects ; Bonetti Kozerski Architecture ; and garden designer Madison Cox. “It’s impossible to find a place that’s so close to New York City, on the ocean, with incredible, architecturally significant buildings, amazing history and soul, and a major music

scene,” said Andrei. “With Asbury Ocean Club, we’re striking a beautiful balance that’s true to oceanfront living – luxurious without being pretentious, relaxed yet chic – the elegance of timeless materials in a modern and contemporary setting. It’s different from anything in the region, the building feels like it belongs on this beach.” Asbury Ocean Club has been designed to both reflect its environment and enhance it. The 17-story building offers sweeping vistas that transport the mind, body, and soul in this city by the sea. The experience starts in the dramatic, double-height lobby, anchored by a reception desk set against polished custom concrete and slatted oak walls. The residences offer a select collection of one-bedrooms, two-bedrooms, and three-bedrooms with oceanfront east-facing terraces that wrap either north or south and provide views of an endless coastline. Two penthouses boast even more expansive kitchen and living areas, including rooftop terraces with outdoor kitchens that also include living and dining space. “We took on a beach house vernacular that’s open, light, and airy, and we kept materials simple-concrete and glass with wood accents,” said Gary Handel, principal of Handel Architects. “Balconies extend out to accentuate the horizontal quality of the views. We then added a gentle curvature to the building to reflect the shoreline.” The interior design gleams with luxe finishes and world-class amenities; the result is sun- splashed indulgence. Every unit celebrates the oceanfront with a wraparound terrace and floor-to-ceiling windows, and includes top-tier amenities. The residences will sit on top of a 54-room boutique hotel, whichmeans the Asbury Ocean Club will stay active, lively, and energized year- round. The hotel will be operated by David

Bowd of Salt Hotels who is also a partner in and operator of The Asbury. Guests of the hotel will share indoor-outdoor spaces on the fourth floor with residents, including an expansive terrace with a 65-foot by 30-foot pool overlooking the ocean, a full-service pool bar and grill, a garden pavilion with reflecting pool and an outdoor lounge with fireplace- setting the scene for a dynamic mix of locals and visitors. The ground floor of Asbury Ocean Club will house an upscale, curated retail center. With amenities that anticipate every desire, Asbury Ocean Club also makes beach living completely effortless; on days when residents feel like staying indoors andsavoring their ocean views or luxurious finishes, everything they need is on-site. Exclusive Asbury Ocean Club amenities will emphasize well-being, including an ocean-view fitness center programmed by New York’s bespoke-fitness brand The Wright Fit; a yoga room with sun-warmed meditation terrace; and a spa with on-call massage, mani/ pedis, and relaxation rooms. Every day, all year, residents will enjoy dedicated children’s facilities, entertainment and meeting spaces, a 12-seat cinema screening room, and more. A residential concierge, on call 24/7, will help buy groceries, stock refrigerators, make dinner reservations and wrangle concert tickets at the request of residents. A dog wash for sandy paws, and storage rooms for paddleboards and surfboards will provide much needed convenience for making the most of the beach lifestyle. Asbury Ocean Club’s library and game room will boast a custom billiards installation for residents and their guests, and an exclusive event room will include a well- appointed demonstration kitchen. By 2020, residents will get to enjoy a private members- only beach club featuring a pool, cabanas, bar and grill, restrooms, and changing facilities.

go. M&A can help you grow your firm, but it comes at a price – many times a high price. TZL: What’s your prediction for 2018? HG: It’s going to be our best year ever in the history of Side- Plate – another record breaking year! success and be willing to go the extra mile to ensure the maximum success for every team member. When team members forget that, trouble ensues.” “It’s important that everyone recognizes they are part of the same team. Everyone needs to be mindful of each other’s

CONFERENCE CALL, from page 7

TZL: They say failure is a great teacher. What’s the big- gest lesson you’ve had to learn the hard way? HG: Thinking that you can hire a software development company to create a custom solution for you and have it stay within scope, budget, and actually work at the end of the day. If you are thinking of developing software for in- ternal purposes or for your clients, you must really consider the possibility of needing an internal software development team. Software tools to make things easier for our custom- ers is a fundamental part of SidePlate so this lesson was only learned once. TZL: While M&A is always an option, there’s something to be said about organic growth. What are your thoughts on why and how to grow a firm? HG: There is no question that organic growth is the way to

THE ZWEIG LETTER September 10, 2018, ISSUE 1263

O P I N I O N

Prove it, part 2

I n my last article, “Prove It,” I explained why organizational trust, employee choice, in addition to path and purpose, were the three critical areas that a firm must pay special attention to as it relates to the young professionals in their charge. In yesteryear, leadership could get away with glaring inconsistencies, but these days, young professionals aren’t having it.

2)Is there continuity in my messaging and deci- sions? If you make a case for not doing something and then a decision is made that is contrary to the stated case, it is wise to discuss this with your key personnel. Trust is fragile, so know that every con- versation is stored, in some way, for later reference by young professionals. “It is my belief that leadership, in any walk of life, has the responsibility to be clearly committed to the communications made to those they lead.” 3)Am I properly incentivizing, or do the incentives fragment and demotivate my team? Meritocracy

In this article, I want to dive deeper into the topic of organizational trust. It is my belief that leadership, in any walk of life, has the responsibility to be clearly committed to the communications made to those they lead. As for young professionals, they should hold leadership accountable for what they say and write, their body language and advice, and their reasoning and solicitations for input. The era of “do as I say, not as I do,” is effectively over. Take time to listen to the feedback of your young professionals. Assess whether the points being made are valid. If they are, then act! Ask yourself: 1)Am I preaching about things that I in fact don’t do? We all do this, but if it’s chronic it must be ad- justed or given its proper context. Chronic hypocrisy is the silent killer of morale.

Brenden Sherrer

See BRENDEN SHERRER, page 10

THE ZWEIG LETTER September 10, 2018, ISSUE 1263

HELP WANTED Zweig Group is looking for a few good Engineers and Architects with signicant Project Management and Training experience to join our team as an outside training consultant for our Education and Training division. If you are a strong communicator and have a desire to help others discover the skills necessary to be a great Project Manager, we want to hear from you.

To learn more, please email: rwilburn@zweiggroup.com

problems and solutions, demand a response that addresses both. If a young professional delivers, let them know what resources they have, how much time they’ll have to execute, and show a sincere interest in seeing the progress. These are great times to see what someone is made of. Can they con- struct and lead a team? Can they meet deadlines? Can they sell this externally and internally? Very few things scream, “I don’t care,” more than saying, “Great idea, run with it,” with- out creating a timeline, setting goals, and providing resources. Someone has stepped up for you, but you’ve left them hang- ing out to dry. This sends a bad message to the other young professionals in your organization. The more consistent you are, the better off you will be with our generation. Inconsistency is not as acceptable in the minds of young professionals. Every management decision will be logged, and may be measured against past statements or actions. This has always been true, but the willingness to throttle down and no longer do more than asked is greater in our generation than it was in the past. BRENDEN SHERRER is a consultant with Zweig Group’s M&A services. He can be reached at bsherrer@zweiggroup.com. “Young professionals should hold leadership accountable for what they say and write, their body language and advice, and their reasoning and solicitations for input.”

BRENDEN SHERRER, from page 9

is the greatest approach to leadership, but sometimes teams need a shot in the arm. As it relates to young professionals, I believe it’s best to incentivize behavior that contributes to a set of strategic goals and markers. It is dangerous to incentiv- ize tactical choices or momentary needs. It will shift a team’s focus to the small win and not the big picture. This will lead to fragmentation or dismissal of the incentive outright. 4)Am I impersonal to the point in which pleasantries are hollow? You have to share a real relationship with your team. It makes the work day pleasurable and the willingness to grind more abundant. But, if you are a leader who doesn’t proactively communicate, or who doesn’t see the importance of understanding the personal intangibles of those who you rely on, then you need to change. One rule of thumb that should help you communicate with young professionals is to follow their lead, so to speak. If someone came by your office to speak with you in person, show them the same courtesy. If someone calls you, show them the same courtesy. 5)Am I following through when a good idea is presented? If so, are you truly providing the resources needed to bring that idea to fruition? If you ask for help identifying “The era of ‘do as I say, not as I do,’ is effectively over. Take time to listen to the feedback of your young professionals. Assess whether the points being made are valid. If they are, then act!”

THE ZWEIG LETTER September 10, 2018, ISSUE 1263

O P I N I O N

The threat is real

P rotection from cyberattacks involves much more than firewalls and encrypted passwords. Of course, these measures are imperative pieces to securing your system. Empowering employees to be hyper-vigilant and engaged in preventing attacks, however, is the first line of defense in keeping systems secure and operational. If you haven’t created a culture of cyber security, you’re asking for big trouble, like long- term damage to your firm’s reputation.

Adnan Yasin GUEST SPEAKER

Creating an immersive, prevalent culture of awareness safeguards assets and is built through: ❚ ❚ Employee diligence ❚ ❚ Creating awareness (and accountability) at all levels of an organization ❚ ❚ Implementing new technology and continually revis- iting technology already in place ❚ ❚ Being aware of current/future threats ❚ ❚ Frequent communications with employees STAYING AHEAD OF THE THREAT. While we try to mini- mize the occurrence and severity of such attacks, each threat is an opportunity to strengthen and reevaluate security at all levels. In addition to the standard protocols, such as requiring employees to use complex passwords that change frequently,

installing antivirus software, creating an aggres- sive firewall, utilizing encryption software, and scheduling regular system backups, there are things a company must do to build a culture where employees think twice about opening emails from unknown sources, who look beyond what appears to be a standard email from a contact because something “just doesn’t look right,” and who put securing network resources top of mind. RPS has a robust, multi-pronged program that reinforces compliance and keeps security at the forefront. We send regular emails alerting staff to impending threats and providing updates on trending issues. We introduced a series of comic strips that presented phishing schemes, malware/viruses, and hacking scenarios in a fun

See ADNAN YASIN, page 12

THE ZWEIG LETTER September 10, 2018, ISSUE 1263

BUSINESS NEWS GATEWAY ARCH MUSEUM EXPANSION OPENS A 47,000-square-foot subterranean expansion and renovation of the Museum of the Gateway Arch is the final component of a $380 million redevelopment of the iconic monument in downtown St. Louis. The renovated museum and visitors center, which opened to the public in July, will enhance the overall experience for the 4 million individuals who visit the 630-foot-tall structure, on average, each year. A dramatic new circular entrance and upper-level lobby facing downtown St. Louis replaces the previous underground entrances at the base of each Arch leg. Visitors will now enter the monument at street level, through a custom-built glass and stainless-steel entry enclosure system. The expanded museum’s reinforced roof deck features 2,400 cubic yards of post-tensioned concrete slabs, as well as 189,000 cubic feet of GeoFoam blocks, an innovative solution to eliminate additional excessive weight on the roof deck. Constraints on all four sides limited access points and the ability to transport materials to the monument, which is situated at the center of a 70-acre site. To the east is the Mississippi River, the region’s foremost waterway (and the source of two flood events that significantly impacted construction activities). And to the west is a major interstate highway that bisects the Arch from the densely occupied downtown area. Further complicating this scenario, the Gateway Arch had to remain open, accessible, and fully operational throughout the three-year construction project.

The museum’s grand mezzanine features a colorful terrazzo floor with a giant U.S. map illustrating the westward migration from St. Louis and other cities. It leads to several new galleries that trace St. Louis’ role in westward expansion from the mid-1600s to the present. A 100-foot video wall inside the tram lobby projects scenes from the original construction of the Gateway Arch and other examples of American innovation. The entrance, building, and exhibits are designed to meet universal design standards so the museum can be accessible by all individuals regardless of age, size, ability, or disability. Designed and constructed to pursue LEED Silver certification from the U.S. Green Building Council, the expansion is the facility’s first renovation since the original Museum of Westward Expansion opened in 1976. The museum expansion was designed by Cooper Robertson and James Carpenter Associates , both of New York, with Trivers Associates, St. Louis. Michael Van Valkenburgh Associates, New York, oversaw the landscape design. Gateway Arch Park Foundation and the National Park Service led the Gateway Arch Park redevelopment projects. JACOBS SECURES ROLES ON ENGINEERING PANELS FOR LEADING AUSTRALIAN ENERGY UTILITY Jacobs Engineering Group Inc. was appointed to AusNet Services’ Regulated Energy Services panel for a three-year contract, with two single-year extensions, that involves undertaking engineering and design work for its regulated transmission

and distribution assets. This includes both greenfield and brownfield asset upgrades, infrastructure replacements and the delivery of new energy infrastructure in a rapidly changing and innovative sector. A second panel agreement has also been signed by Jacobs to provide engineering and design services to AusNet Services’ Commercial Energy Services unregulated business, which includes renewable energy connections. Subject to performance, this panel will cover the same length of time as the RES Panel. AusNet Services recenly embarked on the implementation of a new corporate strategy, known as Focus 2021, intended to grow its contracted energy infrastructure asset base to $1 billion and to operate all three core networks in the top quartile of efficiency benchmarks. The support that Jacobs will provide to AusNet under the recently signed panel agreements aims to help them achieve these goals. “Jacobs is one of our trusted partners in delivering new unregulated infrastructure projects,” said AusNet Services Executive General Manager of CES Chad Hymas. “Our teams complement one another, and together we have moved well beyond the traditional service provider/principal relationship.” As the largest energy delivery service business in the Australian state of Victoria, AusNet Services owns and operates approximately $8.3 billion of electricity and gas distribution assets that connect into more than one million customers.

It is key to instill in your employees that a breach of any magnitude has the potential to jeopardize clients, harm the company and damage the company’s reputation long- term, and could cost employees their jobs if workload is negatively affected. IT security is not glamorous, and if IT intrusions are minimal or not noticed by your staff, it means your IT department is doing a great job behind the scenes to keep systems safe and secure! ADNAN YASIN is IT director, North America at RPS. He can be reached at adnan.yasin@rpsgroup.com. “No matter how diligent and careful you are, there will no doubt be times when a break in your security occurs. Because these threats are ever-increasing and evolving, it is imperative to develop a playbook in advance for dealing with a breach after the fact.”

ADNAN YASIN, from page 11

yet informative way to familiarize employees with the look and feel of these types of attacks. Our own IT department also plays the “bad actor” to test our system and employee awareness; we generate emails that could be malicious communication to evaluate the vigilance of our staff. The artificial malicious email contains an attachment that the receiver is instructed to open. Employees who recognize the threat and follow procedure by sending it to IT are thanked for their efforts and alerted that this was a test email. For employees who open the attachment, we use this as a learning experience to educate on what to look for. This has been an incredibly valuable exercise. WHEN DISASTER STRIKES. No matter how diligent and careful your IT team and employees are, there will no doubt be times when a break in your security occurs. Because these threats are ever-increasing and evolving, it is imperative to develop a playbook in advance for dealing with a breach after the fact. Our IT department works closely with our national and international staff to educate them on steps to take should they be compromised.

THE ZWEIG LETTER September 10, 2018, ISSUE 1263

Page 1 Page 2 Page 3 Page 4 Page 5 Page 6 Page 7 Page 8 Page 9 Page 10 Page 11 Page 12

Made with FlippingBook Annual report